Running a business in the tourism industry

Understanding the European tourism industry

It is essential to know and understand the key trends and characteristics of the European markets so that you can tailor your tourism services and products accordingly. According to Eurostat, the majority of visitors are EU residents.

For more facts and figures and to help you understand your market, use the following sources:

What EU rules apply to the tourism industry?

If you are a business owner in the tourism industry, you should keep the legal aspects of e-commerce in mind when selling your services or products online (for example online bookings), because you are required to follow European legislation on e-commerce. Read more about:

Consumer rights and the tourism industry

All businesses that provide services in the EU must comply with consumer protection rules. There are also specific rules that apply to the tourism industry:

Your responsibilities as an employer

Find the EU-wide rules related to your obligations as an employer and get access to national websites with more country-specific information.

EU funding for tourism

Use the Guide on EU funding for tourism to identify the financial support programmes that best fit your business needs.

Specific taxes for tourism

Travel Agents Margin Scheme (TAMS) for VAT

The Travel Agents Margin Scheme is a simplified VAT scheme for travel agents. It sets special rules for certain services purchased by travel agents and sold as a package (it could include: transport to and from, destinations, accommodation and entry to attractions). VAT is only due in the EU country where the travel agent is located even though the services may be supplied in a different country. As a travel agent, you cannot deduct or reclaim VAT on supplies made to you. However, you will be only taxed on the profit margin that you make on the travel package supplied to your client.


A travel agent charges EUR 2000 to a client for a four-day trip. The total amount that the tour operator is charged EUR 1500 for various services (hotel room, coach services, travel expenses) included in the package. Through the travel agents margin scheme, the travel agent will only pay VAT on EUR 500, which is the difference (or margin) between the cost of the services and what was charged to the client.

Reduced VAT rates

Under EU rules, an EU country may decide to apply reduced VAT rate for the supply specific types of goods and services. These may apply to the tourism services or products you provided.

Tourist occupancy tax

Occupancy taxes are decided at a local, regional or national level. They are collected on short-term residencies in paid accommodation. Occupancy taxes are typically charged per person, per night, or sometimes charged as a percentage of the room rate. In general, occupancy taxes make up a small proportion of the overall cost of accommodation compared with the cost of the accommodation itself and even the VAT that applies.

In many cases, occupancy taxes are payable in person and cannot be included in the pre-paid price of the accommodation. They are therefore particularly visible for travellers who must pay this tax separately to the service provider when checking out.

Tourist taxes to improve the sector

Tourist taxes are decided at a local, regional or national level and go towards improving the sector and/or the destination, such as:

  • promotional activities
  • infrastructure and tourism services (for example, an info kiosk)
  • cleaning, and waste management

Tourist taxes for specific purposes

Some taxes are earmarked for specific areas or resources in the destination, such as:

  • environmental or green taxes
  • cultural heritage
  • social purposes

Green taxes

Green taxes - taxes for environmental purposes are for conserving resources and for offsetting the possible negative effects of tourism. They create an incentive to protect and restore the environment and its resources, compensating for the tourist activity in each area. These taxes are decided at a local, regional or national level and help to:

  • create funds so that destinations can invest in improvements such as environmental protection or resource recovery
  • encourage environmental awareness amongst tourists about their use of the destinations resources
  • promote a positive image of the destination and the companies based there by demonstrating their environmental concern

Tourism and accessibility

Persons with disabilities have the right on an equal basis to access tourism activities and services. Improving access is essential to their full participation in society. Your tourism business can offer products, assistance and services that are accessible for persons with disabilities, including:

Why offer accessible services?

Increasing physical accessibility of your services can benefit your business in several ways:

  • increase your client segment
  • multi-client segment: on average, every 2 disabled guests will bring one companion/personal assistant
  • promotion of off-season travel: some senior citizens and persons with disabilities prefer to travel in low season
  • improve your business reputation

How to improve the accessibility of services

You can improve the accessibility of your tourism services by:

  • following accessibility guidelines for the information you provide physically or online
  • training your staff to accommodate and understand various clients needs

You can also make your business infrastructure more accessible by catering to your clients with the following features:

See also

For enterprises & entrepreneurs
For consumers & employees

EU legislation

Need support from assistance services?

Get in touch with specialised assistance services

Do you have questions on operating a business cross-border, for example exporting or expanding to another EU country? If so, the Enterprise Europe Network can give you free advice.

You can also use the assistance service finder to find the right help for you.

Last checked: 10/10/2024
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